As Cryptocurrencies take a plunge in the market and Bitcoin goes below the $7,500 mark, Denmark’s biggest bank; Danske Bank based in Copenhagen has issued a warning against investing in cryptocurrencies.
One of the reasons given is, like any other fiat currency or real money, its either backed by the government or by the Gold standard. However, cryptocurrencies are not backed anyone or investor and consumer protection are limited to the same liabilities as fiat currencies.
The mere fact that the increase or decrease in price is determined by the hype in the market and its high volatility is the bank’s second reason. Therefore price fluctuation cannot be determined or controlled.
The obvious and most important reason is lack of transparency and regulatory control as the major reasons for their stand and the institution believes it is its obligation to assist in the fight against money laundering and other financial crimes.
Cryptocurrencies at present do not provide a sufficient level of transparency for the bank to meet anti-money laundering (AML) obligations, the notice stated.
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For these reasons, it is not possible to trade cryptocurrencies on the bank’s trading platforms. However, the bank does monitor the market closely, and if the cryptocurrency market becomes more transparent and mature, the bank might reconsider this position.
“We do not in any way want to support the investment environment surrounding cryptocurrencies,” the notice added. It has phased out the possibility of purchasing financial instruments directly related to the prices of cryptocurrencies.
Such instruments can include exchange trade notes that mirror the price of cryptocurrency, the bank noted. Such securities, it claimed, are characterized by high risk and volatility.
In compensation, the bank is providing an alternative stating that if it has to accept funds originating from cryptocurrency investments, it would treat it like every other investment transactions; meaning it must comply with the existing AML anti-procedures and regulations.
Facebook to launch Facebook Pay to Provide Users With Secure and Convenient Payment Experience
Is Facebook Pay an alternative to Libra?
Facebook has announced it will be launching the Facebook Pay service to provide people with a convenient, secure and consistent payment experience across its platform.
According to Facebook, people already use payments across its platform to shop, donate to causes and send money to each other. The Facebook pay will make these economic events easier while continuing to ensure user transaction information is secure and protected.
In order to use the service, users are to add their preferred payment method once and then use the service where it is available to make payments and purchases on the facebook’s platform apps. This will ensure users are not inconvenience as they wouldn’t be required to enter their payment information again.
The Facebook Pay will be available on Facebook and Messenger this week for US customers for fundraising, in-game payments, and event tickets, person-to-person payments on Messenger and purchases from select pages and businesses on Facebook marketplace.
According to Facebook, over time, the service will become available to more people and places including on its Instagram and WhatsApp platforms.
Facebook iterates its desire to continue investment in security of its platform.
Facebook said “We designed Facebook Pay to securely store and encrypt your card and bank account numbers, perform anti-fraud monitoring on our systems to detect unauthorized activity and provide notifications for account activity”.
To the Future
The Facebook Pay is part of our ongoing work to make commerce more convenient, Facebook said and this also will make it accessible and secure for people on its app.
And it will continue to develop Facebook Pay and look for ways to make it even more valuable for people on our apps.
Bankera Announces the Release Its Crypto Lending Solution, the Bankera Loan
Bankera has announced the release Bankera Loan, its crypto lending solution. The Bankera Loan according to Bankera is geared to providing flexible and secure crypto-backed loans to cryptocurrency holders globally.
The Loans are to start with a minimum of at least 100 EUR and to as high as 1 million EUR.
Bankera Loans act as an option for cryptocurrency owners who desire access to financing, but do not want to liquidate their assets. The solution offers cryptocurrency holders the ability to access funds by using their cryptocurrencies holdings as collateral while retaining ownership of their crypto assets.
According to Bankera, the solution aims to democratize access to core banking services for all cryptocurrency market participants by giving them facility better suited for either individual or enterprise needs.
Co-founder of Bankera Vytautas Karalevicius expatiating on the solution said “We see a big interest from the community in smaller crypto-backed loans. This market has been heavily underserved, and typical loan minimums in the current market are often too high”.
Continuing, Vytautas said “Bankera Loans solution offers our clients the possibility to take a loan as low as 100 EUR so that all clients can obtain the financing they need”.
Enterprise clients can also use their crypto asses to get quick facilities for leveraging positions, for expansions or other needs.
Taking a loan is simple, Bankera revealed. It can be achieved by a sign up which is followed after by a deposit of crypto assets to Bankera Loan wallet. This deposit are required and used for as collateral.
Once this is done, Bankera said a customer can then personalize the facility by selecting amount, duration, withdrawal and collateral currencies. Once approval is achieved, the customer/clients receive the facility to his/her Bankera Loans account.
Though the more assets or currencies will be added to the platform in the future, the Banker Loans platform currently supports just over half a dozen currencies such as the EURO, Banker (BNK), Tether (USDT), Bitcoin (BTC), Ether (ETH), NEM (XEM) and privacy coin Dash (DASH).
Bankera aims to revolutionize banking by taking advantage of what blockchain technology has to offer while still focusing on scale by becoming a one-stop store for all financial services, in the same way traditional brick and mortar banks are now, while using technology to reduce the number of counterparties, thus lowering the cost of banking for the end consumer.
25-Year-old pleads Guilty to Running Unlicensed Crypto Exchange.
Kunal Kalra, a 25-year-old from West wood Los Angeles has been said to have pleaded guilty to federal charges of having exchanged over $25million in cash and cryptocurrencies.
Kunal, also known as “Kumar,” “shecklemayne” and “coinman,” was indicted on Friday, August 23 for allegedly trading cash and cryptocurrencies including drug dealers partially via his Bitcoin ATM kiosk.
The exchange was a front for other illegal activities
Kalra was said to have agreed to engagements in other illicit activities such asd distributionof methamphetamine, operating an unlicensed money transmitting virtual platform, laundering money and failing to maintain an effective anti-money laundering instrument.
According to an announcement made by the U.S Department of Justice last Friday, Kalra had said that he has agreed to plead guilty to the offence of converting Bitcoin for cash for criminals, drug dealers who acquired cryptocurrencies from trading narcotics on the dark web, as well as a number of other persons involved in various illicit activities. He had also confessed that he used platforms such as Localbitcoin and a company known as Paxful.
It was alleged that Kalra had been running this cryptocurrency exchange from May 2015 through October 2017. The justice department also went ahead bro say that without the implementation of an anti-money laundering program, Kalra facilities these kinds of transactions with a commission knowing fully well that the proceeds came from drug trafficking.
As at the time of this report the law enforcement agency had already seized about $889,000 in liquid cash from Kalra, about 54.3 Bitcoin and other cryptocurrencies, worth more than half-million dollars.
The announcement also said that the maximum sentence that Kalra stood a chance of facing was life imprisonment.
Legendary Bitcoin Investor Refers to Bitcoin as a Psycho Currency
Mark Mobious had referred to the worlds largest cryptocurrency as a “psycho currency”.
Although, it’s proponents could be seen to be in full support of it, there are those who still express a lot of scepticism towards its, saying that it wired, evil and a complete waste of time. For cryptocurrency enthusiasts, it is usually not a good day when legendary businessmen and investors lash out at the prospects of Bitcoin and act like it possesses no potential. In recent times, we see persons such as Mark Mobious, being a trader who founded Mobius Capital Partners, joining the ranks of Warren Buffet.
How Mobious feels about Bitcoin
According to a report from a recent interview, Mobius said that bitcoin and its crypto cousins as “psycho currencies,” claiming that spikes occur only when people believe in them. He expressed his confidence in the fact that the Bitcoin will ultimately cause other hardcore assets such as gold in a few months from now.
” I call them psycho currencies because it’s a matter of faith whether you believe in bitcoin or any of the other cybercurrencies… I think with the rise of [bitcoin], there’s going to be a demand for real, hard assets, and that includes gold.” He said.
It is noteworthy to state that it is quite difficult to take Mobious seriously as he switches sides at the drop of a hat, he had to express his scepticism about Bitcoin and other cryptocurrencies claiming that they were just pure speculations not worthy of any attention. Earlier this year he also said that digital currencies were a hallmark of the future, and could be an around for a very long time.
Gold Is Where the Money Is
“Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up.”
He said in his comments that investors should get involved in gold regardless of the price, and pointed to the moves of mainstream banks as well, i.e. the European Central Bank, which he said serve as proof that institutions are thinking the same way.
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